In most residences and small businesses, utility consumers learn about their utility consumption through a bill delivered once per month. This system has limited ability to promote conservation since the consumer does not have feedback to associate their specific activities to a particular cost. This lack of information can result in a disconnect between the perception of utility costs and their actual costs. The lack of timely and/or specific information can also lead to inefficiencies and poor decision making by individuals. Although gasoline prices are often a top concern for consumers, the average household spends more than twice as much on utilities as on gasoline. In 2003, an average household spent $2811 on residential utilities, fuels, and public services; while spending $1333 on gasoline and motor oil.
Large commercial businesses commonly employ technology for energy and utility management. Typically a building engineer reviews utility consumption data to ensure utilities are consumed in a cost effective manner. This technology has not penetrated the small business and residential market due to the system and installation expense. Moreover, the data provided by typical existing systems is not presented in a way that non-technical users can understand. Existing monitoring systems also typically do not monitor multiple utilities (i.e. natural gas, electric power, and water), or correlate the use of different utilities to one another.
Many existing electricity monitoring devices attach sensors to each electrical appliance to be monitored. However, attaching sensors and transmitters to numerous appliances in the areas to be monitored can add substantial cost to the system. Such a configuration can also increase the complexity of the system and the difficulty of installing it.
Some existing systems monitor electric loads at the point of service entry into the areas to be monitored, such as an electrical meter installed by a power company. However, such systems typically only analyze overall electricity use and do not analyze use by individual circuits or appliances.